LDK Misrepresents Date of Former Employee’s Report

Share this:

On October 4, 2007 LDK Solar Co., Ltd. (NYSE: LDK) issued a press release refuting a former employee’s reports of overvaluations in the company’s inventory reporting. The press statement identified the employee as Charley Situ and claimed that he was “terminated for cause on September 25, 2007.” LDK did not provide a specific date for Mr. Situ’s report, but stated that the company learned of the allegations “a few days ago.”

The press statement insinuated that Mr. Situ’s comments were an angry reaction to his termination. On October 9, LDK issued a related statement that characterized Mr. Situ as a “disgruntled, former employee.”

In truth, LDK learned of these inventory problems at least three months before they were publicized. Mr. Situ was simply doing his job as a member of LDK’s accounting staff and he publicized his criticism only after the company refused to correct these problems.

On June 26, Henry Tsai of Morgan Stanley requested certain due diligence information from Mr. Lai. Mr. Lai then forwarded the request to his staff, including Mr. Situ.

Mr. Situ informed his supervisor as early as June 2007, only three months after joining the company.

Click here to view a list of the companies that have been subjects of asensio.com reporting and click here to see the complete investment record.

Asensio and FINRA

Asensio & Company, Inc. and Manuel P. Asensio are the only dedicated short sellers ever to have been members of FINRA. This unique-minority membership created complications in the regulatory relationship. Being the first activist short investors and among the first FINRA member firms with a website added to the complexity. A statement by Mr. Asensio is available here. Information necessary to obtain a meaningful understanding of the dispute is available in complete form HERE.

TV Appearances

Click here to view asensio.com’s appearances on various television programs, including CNBC and Bloomberg TV. These appearances reflect asensio.com’s tradition of taking the time to engage in open meaningful dialogues including taking an active part in the public debate about investment valuation.